Collective bank loan from a condominium

Loan taken out by the syndicate of co-owners on its behalf or for the benefit of consenting co-owners

The bank loan made in the name of the syndicate of co-owners or on behalf of voluntary co-owners may finance the following projects:

• Voted works on the common areas
• Community work on the private parts (for example, setting up individual counters)
• Acquisition of property
• Pre-financing of public grants (e.g. work subsidized by the National Housing Agency (Anah) if they relate to the common or private parts and they are of collective interest).

Borrowing subscribed for the benefit of the co-owners who did not refuse

This bank loan can be used to finance the following projects:

• Work necessary for the conservation of the building and the preservation of the health and physical safety of the occupants. This includes work on the stability of the building, the enclosure, the canopy or the networks and work to ensure the compliance of the dwellings with the standards of health, safety and equipment.

• Work made mandatory by law or regulation or by a municipal by-law related to public safety or health
• Works involved in the realization of real estate restoration programs, as part of safeguarding and development plans and real estate restoration
• Works to make the building accessible to people with disabilities or reduced mobility, as long as they do not affect the structure of the building or its essential equipment
• Removal of garbage for hygiene reasons
• Energy saving or greenhouse gas emission reduction work that may include community service work on the units and at the expense of the co-owner of the lot concerned, except where the co-owner can prove equivalent work in the previous 10 years.

1Registration of the subscription of the bank loan on the agenda of the General Meeting

The trustee must register in theagenda of the general assembly:

• The acquisition or work envisaged by the condominium
• The question of the subscription of the bank loan, intended to finance the acquisition or the desired works.

The general and specific terms and conditions of the draft loan agreement and the proposed guarantee commitment must be communicated at same time that the agenda. These documents ensure the validity of the decision the syndicate of co-owners.

2Vote at the general meeting on the subscription of a bank loan

During the same general meeting, the co-owners must vote on the financed operations (works or acquisition) and the subscription to the bank loan. These two questions are voted on separately.

Content of the decision

The general meeting cannot simply vote on the principle of using a loan to finance the work or acquisition envisaged.

The resolution voted must mention the essential conditions of the loan to be taken out, in particular:

• The loan amount
• The duration of the loan
• General terms and conditions of the loan
• Sound overall effective rate.

The authorization of the general meeting, ratifying the terms of the loan, allows the trustee to borrow on behalf of the syndicate of co-owners.

Majority Rules

In principle, the decision to take out a loan is taken at unanimity the voices of co-owners.

As an exception, the decision may be voted on at the same majority that necessary for the vote on the work concerned. This concerns 3 cases:

• When the loan is used to pre-finance public subsidies granted to the syndicate of co-owners for carrying out voted works
• When the loan benefits only the co-owners who decide to participate
• When the loan benefits the co-owners who are considered to have agreed to participate (no refusal) on purpose to be subject to the loan).

3Adherence or refusal of co-owners to participate in the loan

Adherence to the loan

Co-owners who wish to borrow must notify their decision at trustee where the loan relates to:

• Work on the voted common parts
• Works of collective interest on the voted units
• Acquisition deeds in accordance with the purpose of the union and voted.

The notification is made by registered letter with acknowledgement of receipt. It must indicate the amount of the loan that the co-owner wishes to request, within the limit of its share of expenditure.

This notification of accession must take place in a 2 months delay from the notification of the minutes of the general meetingwithout its annexes, to all co-owners.

Refusal to participate in the loan

All co-owners are considered a member the subscription of the loan where the loan relates to:

• Work necessary for the conservation of the building and the preservation of the health and physical safety of the occupants
• Work made mandatory under a law or regulation or a municipal by-law relating to public safety or health
• Works involved in the realization of real estate restoration programs
• Accessibility works for people with disabilities or reduced mobility
• The removal of garbage for hygiene reasons
• Energy saving or greenhouse gas emission reduction works.

The co-owners may, however, refuse to participate in the loan.

They must then notify their refusal to the trustee in a 2 months delay from the notification of the minutes of the general meeting. This notification is made by registered letter with acknowledgement of receipt.

They also have an obligation to pay their share of the price of the works in the 6 months notification of the minutes. This share corresponds to the personal contribution due for the repayment of principal and interest, as well as the payment of fees and expenses.

4Subscription to the loan

The loan agreement is signed by the trustee. It must be in accordance with the draft attached to the agenda and voted by the General Assembly.

The loan contract is signed after 2 months from the notification of the general meeting decision to the co-owners. After this period, the general meeting can no longer be contested by the co-owners opponents or defaulters. The decision to borrow thus becomes final.

5Payment of sums

The loan amount is paid to the syndicate of co-owners by the credit institution (bank).